npr beginnings

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Summary
Logo image – Vikki Gray Document Date: January 1, 2010
NPR History &
Effects of the
1864 Land
Grant
(Part I)

From Inception Through 1875i
In looking back in time, we generally associate the building of this railroad as being a
private venture, without the benefit of government money. We also are led to believe that
the railroad track was following the route published within numerous early maps;
excepting that in crossing the Yellowstone River, it was changed from Glendive Creek to
Coulson. The NPR history files published by the railroad after Frederick Billings
assumed the presidency in 1875 defined the route as such. This was not the route that
started it all, nor was it a private venture. Just how well you know the construction will
be attempted to be answered for the following questions:
 Who created the firm?
 Who are the directors/managers?
 Where did financing originate?
 Why was NPR late starting construction?
 What was the extent of their land grant & their rights?
 Which lands were excluded in the grant?
 What was the construction cost?
 Who benefited best from the rail line?
 These and other concerns are the topic of this presentation.
In the very beginning Congress managed and funded ‘their’ railroad.

This is how it all began ------

Numerous settlers were leaving the eastern regions of the United States, and journeying
west into the Oregon Territory and northern parts of California. This huge migration
essentially split the country into two halves: the East and the West. Management of the
country became extremely difficult, as the round-trip journey between the two parts took
about a year. Discussions about relocating the Capitol City to a point midway between
the two parts was openly discussed, but determined to be unsatisfactory by the
Legislature. Thus a need for better transportation was established. In between these two
parts was a large chunk of land occupied primarily by fur trappers, army personnel,
sutlers (store keepers), and Indian Nationsii, plus some residents and towns. This was the
remains of the Louisiana Purchase, in which various treaties had been made between the
US and the Indian Nations. In order to establish better communications between the two
US halves, Congress determined the best method at that time for travel, was to build a
railroad connecting the two halves. This required a new Treaty be established defining
and permitting the passage of settlers by roads and rail, construction of telegraph lines,
and building of supply depots and forts through land occupied by the Indian Nations.
Thus, a meeting to discuss and negotiate such needs with the various Nations was called
to convene at Fort Laramie in 1851.

Attending the Treaty meeting were Father DeSmet, Jim Bridger, the US Treaty
Representatives, and the Indian Nations representatives. During the meeting, the
members agreed to the negotiated conditions; although Crazy Horse and Red Cloud
(Sioux Nation) refused to be a part of the negotiations, the remaining elders approved the
Treaty. During the Treaty discussions, Jim Bridger sketched out the Indian Nations
Reservation Boundaries to all attendee’s satisfaction. Father DeSmet took the Bridger
map details with him to St Louis where he created the Fort Laramie Treaty Map of 1851.
This map clearly defines the Reservation Boundaries; however, the treaty wording for the
Crow Reservation’s northern boundary omitted a small closure line, causing much
discussion in later years; and apparently all who argued about that fact, failed to look at
the map.

The land-split between the Crow and Sioux Nations is shown to be on the Powder River,
see details coordinated onto current map coordinates. The “not-connected” segment is
shown as a dashed line.
Ever since this Treaty, the Sioux Leaders have challenged the Treaty Boundary, claiming
much more land was to be theirs, and that the land-split between the Crow and Sioux was
to be on the Big Horn River. This interpretation had some obvious input into the future
battles between the Military and the Sioux (up to 1876), but only a wee bit. The Ft
Laramie Treaty, which never existed, was probably the main cause of dissatisfaction by
both sides.
When this signed Treaty was delivered to the US Senate, the Senate members closed their
doors and held secret meetings to discuss the terms for about a year. This resulted in them
changing all negotiated points to suit themselves, and then they shoved the revised Treaty
into the archives. It never saw the ‘light of day.’ In the meanwhile, the Treaty called for
food and supplies to be issued to these Nations on a continual basis, and that the Indians
are to remain on their Reservations. Those who stayed were virtually destitute, and those
who foraged elsewhere were being hunted by the Military. Not one person at that time
(near as I can find) realized that the 1851 Treaty wasn’t enacted, thus no new food &
supply contract orders were issued. Concurrently with this Treaty’s discussion in the
Senate, various members initiated bills for establishing a railroad route between the two
US halves. Three routes were approved for survey: Northern Pacific Railroad (NPR),
Central Pacific Railroad (CPR) & Southern Pacific Railroad (SPR). The NPR single-line
survey contract worth $150,000 in 1853 was given to Isaac Stevens, the newly appointed
Oregon Territory Governor. The other two lines had both a primary line and an alternate
line to be surveyed. During and after the surveys Congressional members were rounding
up votes for their choice of a line. Lobbying was intense. The Central Pacific Line won
the contest, and construction was started. The NPR and Southern Lines lay dormant.

The NPR Route Survey Line (1853-1854)

The contract called for a land survey to: 1) establish the detailed center of the line, 2) the
route from St Paul to Puget Sound, 3) land & local area general survey within 20-miles of
the track centerline, 4) establishment of major streams and rivers location and their
headwaters, 5) report on location and condition of Indian Tribes within the surveyed area
and 6) costs and revenue plans for construction. Edwin Johnson (Corps of Engineers) in
1853 took Steven’s information and created a map showing the complete route proposed
by Stevens (rr000240.sid).

Stevens created three map sections1 released two years later that show the overall route
proposed for NPR, although fully detailed route survey segments were created and
defined in several volumes of notes and maps. The first section goes from St Paul to
latitude 102 degrees. The top section depicts the railroad grade. This section runs
northwest towards the Yellowstone-Missouri Rivers’ junction, and incorporates three
lines adjoining existing Lake Superior shipping points.

The second section runs from latitude 102 to the Rocky Mountains. It follows along the
north bank of the Missouri River to Fort Benton, and then southwest to the mountain
passes, trestles & tunnels.

1
For those interested, these are the map identifications: rr004981 through rr004983.sid.
The third section continues on to Puget Sound. After crossing the Rocky Mountains, the
route follows along the north side of the Columbia River. Both the name ‘Puget Sound’,
St Paul, and the Columbia River locations will become areas of great contention that
virtually stop the railroad from its pre-destined existence when enacted to be constructed.
Although St Paul was the planned origin of NPR’s route, Stevens proposed that “feeder”
lines be created from Lake Superior to junctions on the NPR railroad line.

Note: Lake Superior had three major shipping ports at the southern end of the
lake at this time and as noted on the maps. Later there were more.

The line ended at Fort Vancouver (Puget Sound) on the west coast, but additional areas
where large populaces were beginning to form, were mapped for possible additions.
Stevens recorded many journal articles about the decrepit condition of the Indian Tribes
he visited along the way and sent scathing reports to his superiors. It was very apparent
that no support was being supplied to the villagers who remained on the reservations, and
many had died, and many more were starving. All tribal members he met were very
appreciative of his personal efforts, but they wondered why they were being neglected.

In 1854 Lt Warren, Topographer Engineer, Corps of Engineers, created a combination
map depicting the routes for all three surveys (dg4137.sid). Following this mapping
exercise, the politicians and various lobbyists began furious campaigns to select their
specific desires for a transcontinental route. Isaac Stevens became quite ill, and was
unable to effectively lobby for the NPR route, and it was set aside in favor of the Central
Pacific Railroad Route2. Co-incidentally, the precise mapping of Montana Territory
completed by his team was set aside, and not released until after 1857. After this time,
maps released by various agencies reflected merely the Isaac Stevens route, without
identification as to it being the NPR route. For over ten-years this route lay dormant. The
details he left actually created the true mapping of Montana. It appears that no one was
advised of this, excepting the military. It is extremely accurate.

By 1860, the Nebraska Territory occupied most of the remaining vestiges of the
Louisiana Purchase. Settlers were pouring into the west coast in ever increasing numbers,
and more and better transportation in the northern corridor was clearly needed. Congress
resurrected the 1853-54 Stevens survey, and initiated the construction of the railroad,
which was formally approved in July, 1864. The basic requirements are noted below in
HR 483:

HR 483 - April 2, 1864
 Joint Resolution of Congress establishing NPR & Government startup
funding as later approved by the President on July 2nd.
 This resolution is very extensive and provides for most all conditions that
can be thought about in advance of the actual effort.
Established under Section 1 were:

 “Northern Pacific Railroad Company”, shall have perpetual
succession & a common seal.

2
Carrie Adell Strahorn, wife of ‘Pard’ Strahorn, kept a diary of their adventures relating to the construction
of central pacific (Union) railroad “Fifteen Thousand Miles by Stage”. This is a must-read for anyone
interested in the events that created towns in secrecy. Vivid descriptions of Montana are presented.
 A branch line from Puget Sound to Portland shall be established
(Note: Puget Sound is an unknown specific location entity)
 1,000,000 shares of private corporate stock shall be created, value
= $100 ea.
 Bought with $10.00 down, annual interest on $100 is 6%.
 This Act provides for construction of railroad & telegraph lines
from Lake Superior to Puget Sound above the 45th latitude
 The GLO established a 40-mile fixed corridor about the Steven’s
track centerline route on July 5th. No lands within the odd-
numbered sections could be used for new homesteading
opportunities. This was transmitted to all offices.
 Construction costs were estimated from previous analysis as:
 Estimated 2,000 miles of track (Lake Superior to Puget
Sound)
 All odd-numbered sections of land on each side or track
within corridor are set aside for NPR (20 mi in states; 40 mi
in territories)
 Each section assumed to be 640 acres
 40,000,000 acres x $2.50/acre3 = $100 MIL (eventual land
sale)
 2,000 mi x $35,000/mi (construction costs) = $70 MIL total
cost
 All congressmen were appointed as “Board of Commissioners”,
and from this body, 15 of them were to be considered a quorum for
business transactions.
 Within 3-months, five of the commissioners residing in MA are to
convene the corporation’s 1st meeting and appoint the operating
NPR officers (President, Vice President, ‘Secretary & Treasurer’
from the Congressional Board members.
 The Board is authorized to request stock issuance for NPR
Construction from the US Treasurer (who is also the NPR
treasurer) as needed for construction.
 The Board is to (within six-months) receive lists of stock
subscriptions collected by NPR management.
 Such subscriptions are to be bought with 10% cash down. (Par
Value = $100)
 When 20,000 shares are received, NPR President shall call for a
subscription-holders meeting. ($200,000 in actual cash)
 The subscription-holders shall then elect 13 corporate directors
from the Congressional members of their choosing for the actual
NPR Board.
 The Congressional Members Board shall cease to exist at this time,
and all books, etc. are to be delivered to the newly elected NPR
President.

3
Congress established a minimum fixed price for all domain land within the NPR route corridor to be
double the existing value of $1.25 per acre. Definitions of Domain Land are extremely vague.
 Under Section 2:
 Right of Way through all Public Lands is granted.
 NPR is granted right, power & authority to take from public lands*
adjacent to the right of way: timber, stone, earth, and so forth, as
needed for the construction. (This empowers NPR to take whatever
is needed without additional RIGHTS)
 The right of way extends 200 feet on each side of the actual track
location.
*Mineral lands are excluded; but in 1879 Congress added
gravel to the list of minerals, allowing NPR to take millions of
acres of forest land in exchange. Many more corridors of land
are required. Also, many prospective homesteaders on the
even-numbered sections lost or abandoned their title claims.
(Check the BLM listings to determine if your ancestor is one of
these persons – the list is very large.)
 The right of way includes all necessary land for station buildings,
workshops, depots, machine shops, switches, side tracks, turn-
tables, and water stations.
 The right of way is exempt from taxation within the Territories of
the United States.
 The United States shall extinguish (existing) Indian titles to all
lands acquired/needed by NPR in donation to the road.
 Every alternate section of public (domain) land, not classified as
mineral*, and designated by odd numbers, to the amount of 20
alternate sections per mile on each side of the RR line, through the
territories shall be assigned to NPR. (80 – miles total)
 Ten alternate sections of land per mile on each side of said RR line
whenever it passes through a state shall be assigned to NPR.
*United States retains full title, not “reserved, sold, granted, or
otherwise appropriated, and free from pre-emption (squatters),
or other claims or rights, and when the NPR line is definitely
fixed, and a plat is to be filed in the office of the Commissioner
of the General Land Office; excepting--------Should any of said
sections or parts of sections have been granted, sold, reserved,
occupied by homestead settlers, or pre-empted, or otherwise
disposed of, then other lands in odd numbered sections shall be
selected by NPR in lieu thereof (Sec of Interior to concur)
 Lands "in-lieu” shall be selected from a pre-emptive strip of land
bordering the corridor not exceeding ten miles in width on each
side. (this added 20-miles width to the 80-mile corridor)
 The corridor is now 100 miles wide (later increased to 120 mi due
to large influx of settlers and identification of mineral lands)
 No money shall be withdrawn from the treasury of the United
States to aid in the construction of the Northern Pacific
Railroad.(HA-HA)
 Note: Congress pays 6% interest on the NPR $100 bonds
held by investors that they released at a $10 cost; until the
RR is completed! (Investor income = $6.00 per year on the
interest. For their $10 investment)
 NPR may acquire other railroad companies whose tracks
exist along intended route, along with their existing rights.
HR 483 Demands – Sec 4 (These verge on total lunacy)
 When NPR completes 25 consecutive miles of railroad and telegraph, the
US President shall appoint three commissioners to examine and verify
that work was completed as stated.
 Commissioners are required to verify, send report to the President; and if
okayed by the President, they are to call for issuance of rights and titles to
all odd numbered land sections due NPR in each of the 25-mile plats so
issued.
 No more than ten sections of land titles & rights per mile are to be
delivered to NPR in MN until all tracks within that state are finally
completed & verified.

HR 483 Demands – Sec 5 (Special Demands for Construction)
 NPR RR line to be constructed in a substantial and workmanlike
manner, with all the necessary draws, culverts, bridges, viaducts,
crossings, turnouts, stations, and watering places, and all other
appurtenances, including furniture, and rolling stock, etc., equal in all
respects to other first class railroads
 NPR shall not charge the government higher rates than they do to other
individuals for like transportation and telegraphic service
 NPR integration with other railroad lines for travel is authorized
 Other railroads to be built by the United States to be treated fairly &
with equitable terms when joined with NPR

HR 483 Demands – Sec 6
 The President of the United States shall have lands surveyed for forty
miles in width on both sides of the entire RR line - after the actual route is
fixed.
 The odd sections of land granted to NPR shall not be available for sale,
entry, or pre-emption before or after they are surveyed, except by NPR.
 Reserved alternate even sections of land [in the 120-mile corridor] shall
not be sold for less than $2.50/acre.
 Initial domain land value was $1.25/acre before RR line

HR 483 Demands – Sec 7
 NPR is authorized and empowered to enter, purchase, take, and hold all lands
or premises that are needed for construction and working of RR not to exceed
width of 200 feet on each side of the centerline of the track.
 Unless a greater width be required for the purpose of excavation or
embankment
 Plus other lands as needed for their operation; e.g., irrigation ditches,
service roads & accesses [Note: This clause simply means that NPR
can extract water from a source and route it to their point of need via
ditches or transport it by other means. Same is true of roads and
accesses. No additional or formal restatement or filing of Rights; eg.,
Water, Access, etc. is required.]
 NPR has the right to cut and remove trees and other material that might,
by falling or encumber its road-bed though standing or being more than
200 feet from the track centerline.
 Appraisal of land value, if contested for use by NPR, shall be
determined by law within 6-years [with the government attorneys].
 Plaintiff shall pay court fees in such claims. (Claims clearly not viably
permitted)

HR 483 Demands – Sec 8
 NPR shall start work on RR construction within three years from the approval
of this act by the President, and shall complete not less than fifty miles per
year after the second year. (required start date is July 1867)
 NPR shall complete the whole road [and all operational facilities] by July 4,
1876.

HR 483 Demands – Sec 9
 Should NPR breach the conditions hereof, and allow the same to continue for
upwards of one year; then------- Congress may do any and all acts, which may
he needful and necessary to insure [ensure] a speedy completion of the RR.

HR 483 Demands – Sec 10
 All people of the United States shall have the right to subscribe to NPR bonds
until the $100 MIL is used up.
 Mortgage or construction bonds (stock certificates) shall NOT be issued by
NPR on road, land, or property lien, unless permitted by Congress.

HR 483 Demands – Sec 11
 The NPR route shall be a post route and a military road, subject to the use of
the United States, for postal, military, naval, and all other government service.
 It shall be subject to such regulations as Congress may impose.

HR 483 Demands – Sec 12
Acceptance of these terms to be made within 2-years by the NPR President (July
1866)

HR 483 Demands – Sec 13
 NPR directors shall make an annual report of their proceedings and
expenditures.
 NPR shall fix, determine, and regulate the fares, tolls, and charges to be
received and paid for transportation of persons and property on said road.
HR 483 Demands – Sec 14
 The NPR treasurer and secretary shall give bonds, with such security as the
board from time to time may require.
 No person shall be a director of NPR unless he is a stockholder and qualified
to vote for the directors.

HR 483 Demands – Sec 15
 NPR offices for the period indicated in the by-laws, shall not exceed three
years.
 Seven members, including the president, shall be a quorum for the transaction
of business, and shall have full power including all acts and things touching
the location and construction of the road.

HR 483 Demands – Sec 16
 NPR directors are to require payment of 10% cash for all $ 100 bond
subscriptions received, and balance due at some later time. (Note: Balance due
date not identified or located.)

HR 483 Demands – Sec 17
 NPR is authorized to accept for its own use any grant donation, loan, power,
franchise, aid, or assistance which may be granted to or conferred upon them.

HR 483 Demands – Sec 18
 NPR shall obtain the consent of each state’s legislature through which any
portion of the railroad line may pass prior to construction.
 Note: Conflicts with Congress’ prior commitment
 Placing engineers and survey teams on the route before obtaining consent of
state legislature is granted.
 Note: President of the US to assign teams!

HR 483 Demands – Sec 19
Unless NPR obtains bona fide initial subscriptions for the bonds in the
amount of $20,000,000 (with 10% paid by subscribers, within two years
after the passage and approval of this act), the act shall be null and void

HR 483 Demands – Sec 20
 Congress may, at any time, having due regard for the rights of NPR, to add to,
alter, amend, or repeal this act.

HR 483 Demands – Sec 21
 Before any land granted by this act is conveyed to NPR there shall be first
paid into the treasurer of the United States the gross cost of surveying,
selecting, and conveying the same, without any further appropriation, stand to
the credit of the proper account to be used by the Commissioner of the
General Land Office for the prosecution of the survey of the public land.
 NPR obtains this funding from US Backed bonds
 Passed the House of Representatives May 31, 1864

After passage and approval from the Senate and the President, the following
additions were introduced to amend the Act of 1864:

SR 124 - Feb 24, 1865
Authorizes the Northern Pacific Railroad Company to invest its funds in
government securities for certain purposes (not defined)
SR 124 Demands
Certificates for shares of the capital stock, paid in full, may be issued by NPR,
bearing interest at six per cent from their date, payable on January 15, 1866 and
semi-annually on July 15 & January 15 thereafter until January 1875, after which
interest shall cease, and then the dividends paid to be dependant on performance.
Referred to Committee of the Pacific for review on March 1, 1865.
SR 124 Demands (Basic Needs)
NPR is authorized to invest its moneys arising from sale of government stock.
NPR is required to deposit fifty per cent of all such sales invested in government
securities, into the treasury of the United States.
To remain in permanent security for the payment of the interest on all its
stock.
Accrued interest shall, when stock is due and payable, be paid to NPR &
applied to the payment of the interest upon its stock.
SR 124 Demands – Sect #2
U.S Treasurer is authorized and required to receive such deposits.
Funds to be held in a special account by the US Treasurer.
SR 124 Demands – Sect #3
The US guarantees payment of interest on the NPR stock so issued.
US has no liability on their part beyond the amount of the securities deposited in
the treasury.
SR 124 Demands – Sect #4
NPR board of directors is required to issue to the Secretary of the Treasury, on
December 1st of each year, a report showing the number of shares of stock issued
including:
the amount of government securities deposited in the treasury,
the amount of interest received by NPR from the treasurer accruing from
the deposited securities, and
the amount of interest paid by NPR upon its stock.

S 387 Resolutions
Secretary of the Treasury is authorized and directed, when the NPR
commissioners report completion of 25 or more consecutive miles of track:
the payment of the interest on the NPR stock on the portion of track thus
completed, and at the rate per mile computed.
for a period not exceeding 20 years from the date of issue, at the annual
rate of six %.
Verify the stock issued agrees with the contract
S 387 Resolutions – Sec 2
NPR shall, on the first days of April and October each year, pay the United
States so much of the proceeds of the sales of all the lands situated all the south
side of the railroad track, as necessary to reimburse the government for interest
received from the US.
Should the above not be sufficient, NPR shall pay into the treasury ½ of
their net earnings so as to equal the amount paid by the government for
interest.
S 387 Resolutions – Sec 3
None of the lands granted to NPR shall be subject to any general or local tax for
any purpose whatever until the lands are sold and conveyed to new owner.
All expenses for engineering and commissioners required by this act shall be
paid by NPR.
lands to which NPR is entitled shall not be subject to any general or local
taxation for any purpose whatever for a period of five years after the issuing of a
patent (from the GLO).
S 387 Resolutions – Sec 4
All the privileges, grants, rights, immunes, limitations, and restrictions of the
original act incorporating the Northern Pacific Railroad Company shall be
considered to apply to all such future successors.
Act not to be construed to authorize any pledge of credit of the United States
further than originally agreed.

S 387 Resolutions – Sec 5
3/4ths of NPR board of directors shall always be citizens of the United States,
[and that no money shall be paid on account of this bill until audited]
Puget Sound means the waters connected with Straits of Juan de Fuca. (Note:
Congress had a very difficult time in understanding where Puget Sound was
actually located, as this was an extensive marsh land.
S 387 Resolutions – Sec 6
This act shall take effect on and after its passage.
Congress may at any term alter, amend, or, repeal this act.
SR 223 Demands
Consent of Congress is given to NPR to issue bonds, and to secure same by
mortgage upon its road
Used to raise funds to construct railroad and telegraph line between Lake
Superior and Puget Sound
Used to incorporate NPR and is construed to mean all the waters connected with
the Straits of Juan de Fuca in the United States, and a branch line to Portland
bonds to be issued at a rate not exceeding $32,000/mi
SR-121 Mortgage Demands
NPR authorized to issue bonds to aid in the construction and equipment of its
road, and to secure the same by mortgage on its property and rights of property of
all kinds
Basically restates the 1864 Act, but simply (over 30 pages) now permits funding
my mortgage of pending land.
Several Amendments were attached dictating some changes in wording and
terms.
SR-121 Amendment (Welker)
New grants for additional land shall be sold by NPR to actual settlers at a price
not exceeding $2.50* per acre, and
Land sale shall not exceed 160 acres per person.
* Was Minimum of $2.50/acre
SR-121 Amendment (Hawley)
Repeated Welker’s amendment and added:
NPR’s mortgage shall not operate so as to prevent the sale to actual settlers only
Any violation by NPR of this condition shall cause forfeiture by NPR of all their
land grants.
SR-121 Amendment (Williams)
Congress reserves right to regulate and limit freight rates and fares of passengers
on railroad
SR-121 Amendment (Loughridge)
Mortgages executed by NPR upon grant lands shall have no validity as an
encumbrance on NPR until NPR has received conveyance of such lands by the
government.
SR-121 Amendment (Van Wick)
NPR shall not charge over $.05 per mile for each passenger carried,
NPR shall not charge freight rates in excess of 10% of the rates charged by other
railroads from the Mississippi River east to the Atlantic seaboard.
NPR shall not issue mortgage bonds or create indebtedness over $100,000,000.
NPR shall transport US troops and munitions of war free of charge.
SR-121 Amendment (Winans)
Strike out these words:
"That in the construction of the said railroad, iron or steel only shall be
used, the same to be manufatured from American ores exclusively."
SR-121 Amendment (Finkelnburg)
Insert following in referring to Portland branch line going eastward from the
coast:
"not more than three hundred miles from its western terminus”
SR-121 Amendment (Ingersoll)
Mortgages executed by NPR shall not be valid or create any lien on the lands
granted to NPR, until NPR has received the land patents from the United States.
SR-121 Amendment (Arnell)
Even numbered sections of land on the line of the NPR and its branch [to
Portland], and alternate to the sections granted to NPR to an equal number of
sections so granted are hereby, donated, and shall be conveyed in trust by patent
to a board of thirteen commissioners, appointed by the US President , and this
board shall be called “Freedmen's Homestead Commission”
SR-121 Amendment (Arnell-pg2)
Lands conveyed may be sold; mortgaged, or otherwise disposed of by the
Freedman’s Commission
Proceeds of sale shall be applied for the procurement of homesteads for
settlement by persons formerly held in slavery and their descendants, and for
education of same
SR-121 Amendment (Arnell-Sec#2)
Freedman’s commission shall make all necessary rules and regulations for sale
and disposal of lands donated in trust commission.
The commission shall make a full report of its doings at each regular session of
Congress.
SR-121 Amendment (Davis)
The mortgage to be executed under provisions of this section shall not be
construed to carry greater rights or privileges than possessed originally.

SR-121 Amendment (Smith)
Correct typo & clarifications added
SR-121 Amendment (Coburn)
Clarified corporation definition.
SR-121 Amendment (Asper)
Removed some wording errors.
SR-121 Amendment (Conger)
If NPR refuses the grant conditions nothing shall be construed to limit any effort
Congress may take to build the railroad through domain land
SR-121 Amendment (Lawrence)
Military personnel loyal to the government for at least 90 days shall, without
payment of any fee or commission to any register or receiver of any land office,
be entitled to enter one quarter section of land, not mineral, of the alternate
reserved sections of public lands along NPR or other public works
Every person entitled to the benefit of this act may locate on ¼ section provided
in one entire ¼ Section or more than two subdivisions of a quarter section less
than four miles apart.
SR-121 Amendment (Lawrence- 2)
United States shall have the right, at all times, to take possession of and own the
railroad by paying the actual cost to date.
SR-121 Amendment (Amber)
Remove words “rights of property” in 1st Section.
SR-121 Amendment (Fitch)
Only American citizens are permitted to subscribe to the stock, or purchase
mortgage bonds of said road, and none of the lands shall be taken out of the
country,
American citizens shall he permitted to ride on NPR road without charge.
SR-121 Amendment (McNeely)
NPR shall pay into the treasury of the States or Territories through which it shall
pass, 7% of the gross earnings of NPR’s railroad,
A portion to be paid to each State or Territory prorated on number of miles of
road operated within each area.
SR-121 Amendment (Sargent)
Clarification comments only.
SR-121 Amendment (Maynard)
NPR can still build the line under the original incorporation.
SR-121 Amendment (Crebs)
All lands granted shall be sold by NPR within 15 years after the date of
completion.
Lands still owned after that date are to be returned to the US.
Lands sold w/o value, those contracts are to be considered null & void.
SR-121 Amendment (Clarke)
All lands shall be immediately open to settlement, and shall be sold to actual
settlers only, who are entitled to patents.
Land to be at the price of $2.50 per acre.
After 20miles of track is laid, NPR to advertise such land for sale.
Many other minor restrictions on NPR applied.
SR-121 Amendment (Randall)
Nothing in this act shall be construed as a guarantee, by the US of the bonds
sold by NPR or agents, or as authorized by this act.
END OF ALL AMENDMENTS to the 1864 Act.
Board of Commissioners - 1864
All Congressional members who voted for the passage of HR 483 were selected
to manage the startup of NPR. Josiah Perham (MA), a member of the Board was
elected President of NPR – serving from Dec 7, 1864 to Jan 5, 1866. John
Gregory Smith (VT), also a Board member, was elected to serve as NPR
President from Jan 5, 1866 to November 11, 1872. These persons hand a very
difficult time learning how to manage a start-up corporation. Most all of the
funding received went towards financing very lavish life styles; virtually nil went
towards the construction. Two major operational concerns surfaced that caused
the railroad to delay the construction start: 1) How should the line connect with
the shipping port(s) at Lake Superior, and 2) Where should the line alongside of
the Columbia River be located. Both concerns were hampered by political insider
fighting, as virtually each congressional person wanted his constituents to benefit.
Some wanted the line to be routed in Oregon, and not Washington, as Oregon was
now a state, and the amount of grant land would be severely reduced. Obviously,
the management team lost sight of construction and the years approached a
decade, all without any real progress.

Board of Commissioners’ Mandate & NPR Actions

Timeline of NPR (1864-1870)
NPR (Congress) failed to sell $20,000,000 worth of stock-shares by 1866;
voiding the land grant act. Additionally NPR failed to start construction until
1870 & two extensions moved completion to July 4, 1883.
NPR 2nd president John Smith & the largest bank in America “Jay Cooke &
Company” asked Congress to permit NPR to mortgage the yet-to-be-identified
land grant acreages in lieu of Congressional backed shares.
Influential persons were given liberal loans, etc., so as to get votes to pass the
legislation (SR 121).
Note: Extracted from NPR secretarial files, MN His Soc.

Timeline of NPR (1867)
The NPR Board of Directors tries to find external financing w/o success and
commissions Edwin F Johnson to start surveys & recommend routes for the track.

Route Selection used by Congress for the 1864 Grant was the Stevens 1853-554 Survey It
ran from St Paul northwest to Fort Union on Missouri River, then it followed the high
plateau north of Missouri River to Ft Benton and then on to the Great Falls of the
Missouri. After crossing the Rockies it followed the Columbia River to Puget Sound
(north side).
NPR Route Plan in 1867 Lake Superior to the Dakotas
NPR’s management still hadn’t decided upon a route for the train, and was ignoring the
original Steven’s survey, which contained the ‘blocked-out odd-sections of land’. During
the preceding decade the western frontier had changed drastically, with settlers pushing
into the south-western parts of Montana due mainly to the discovery of gold. It appeared
that a straight line towards the Yellowstone River was a better choice. NPR contacted
Edwin F Johnson and appointed him Chief Engineer in May 1866; and placed him in
charge of route. General Ira Spaulding was assigned to survey two proposed routes,
meaning that another choice had to be made:
Crow Wing-(Superior City-Crow Wing River-Otter Tail Creek-Red River to
Cheyenne River)
Sauk Rapids-(Bayfield-Sauk Rapids-Breckenridge-Red River to Cheyenne
River)

NPR Route Plan in 1867 Dakota to the Rockies
NPR decided to cross the Missouri River at Fort Clark (30 mi North of Bismarck), then
west to Glendive Creek on the Yellowstone River and follow it west staying on the high
plateau to north of the river. This route converges at a point 20 mi north of the Big Horn
River – passes through Judith & Belt Mountain passes, then through “Gate of the
Mountains”- up the Missouri & Deerborn Rivers to Codotte’s Pass. A branch line from
the convergent point north of the Yellowstone River to Big Horn City was added. (Big
Horn City was established on the banks of the two rivers where they joined together. This
a major mail stop.)

NPR Route Plan in 1867 Western End to Eastern Connection
This route almost followed 1853-54 Steven’s route. Examination of line cost options
compared construction costs with freight revenue & transportation costs for each
segment. General James Tilton was surveyor for eastward segment from Puget Sound.
The completed line cost was based on 1,775 miles total track, at a cost of $140,377,500
for construction, and another $16,480,000 for a branch to Portland. Construction cost
average was estimated at $79,421/mile.

NPR Route Plan in 1867 Lake Superior Harbor Search
Meanwhile, the NPR team was trying to decide where on Lake Superior they would start
the line. Four prime choices awaited their decision. Each were politically motivated as
being the best port for cargo: Chegwamigon Bay, Lake Shore at Apostle Island, Superior
Bay at Superior City, or Superior Bay at Duluth.

NPR Financial Concerns, 1867-1869 (NPR under Congressional MGMT)
Money was raised to pay for surveys, but no money was available for construction. In
April 1869 the survey recommendations for the final route was presented to Chief
Engineer Johnson for consideration (Almost five years to reach this decision point!) Jay
Cooke & Co. was presented with these route plans for finances; but no action could be
taken until the full route was examined by them! The survey indicated cost would be
$85,277,000 ($42,638 per mi). Cooke later after knowing more about the route, agreed to
finance the construction, and let $100,000,000 in bonds with a 7-3/8th interest (payable in
gold). Both the grant land and track line were attached to the bonds as collateral. NPR
had tried to get more federal funding, but was denied access. Congress granted a 2nd two-
year extension for starting construction (now placed at July 4, 1871).

Timeline of NPR (1869)
On March 1st – Congress changes its mind and allows NPR to issue bonds secured by
mortgage on their new route. Both the railroad land & telegraph operations were
mortgaged for construction. In April the preliminary survey report was prepared, and on
May 20th – Jay Cooke & Company agreed to assume financial responsibility of the
railroad. In June – W Milnor Roberts was commissioned (by Cooke) for center of track
surveys w/Sam Wilkeson.

Timeline of NPR (1870)
On Jan 1-Agreement with Cooke was signed; on Feb 15-a ground breaking ceremony
was held at Thompson Junction (Carlton, MN.) On Mar 9-Samuel Wilkeson elected
secretary of NPR and on Apr 7-two-thirds stock in St Paul & Pacific RR was acquired.
On May 31-Congress permits NPR to issue construction bonds. The rules for land
acquisition was revised on Jul 15 when Congress grants Civil War vets homesteads on
NPR original land grants (eg., Northern Route.) In August-the Lake Superior &
Mississippi RR linked with NPR to St Paul & Duluth. Track laying in MN finally started.
On August 13th-preliminary maps of the route in MN, OR & WA were filed. Newly
appointed officers for management of NPR took control:
John Gregory Smith – Pres* (Vermont)
Richard D Rice – VP* (Maine)
Samuel Wilkerson – Secretary
AH Barney – Treasurer
W Milnor Roberts – Engineer-in-Chief
DC Linsley – Ass’t Engineer-in-Chief
*Denotes Congressional Member from Original Board of Commissioners

As part of the 1870 restructuring, both the NPR Board and the Executive
Committee were revised. (Note the Congressional membership continues)

John Gregory Smith (VT)
Richard D Rice (ME)
Thomas H Canfield (VT)
William H Odgen (IL)
William G Moorhead (PA)
William G Fargo (NY)
RP Cheney (MA)
George W Cass (PA)
Frederick Billings (VT)
William Windom (MN)
----Stinson (IL)
----Felton (PA)
Charles R Wright (PA)
Samuel Wilkerson (Secretary)
Executive Committee Members

Gregory Smith
William G Moorhead
George W Cass
Richard D Rice
Charles R Wright
Frederick Billings

Trustee for 1st Mortgages was J Edgar Thompson Cooke, and through Jay Cooke’s
persuasive efforts money was freely given to Congressmen for their votes. Loans and
NPR stock was also liberally given to various Congressmen, VP Colfax, Horace Greeley
of the NY Tribune - and other influential editors. Financial interest in NPR’s plan to build
the railroad was made possible by giving stock to President Hayes, Secretary of Treasury
Hugh McCulloch, and Henry Ward Beecher. Other influential people whose assistance
assured success were Ulysses S Grant, John C Freemont and many others.

One of the more interesting maps was published 1870 in Germany, Pacific Eisenbahnen
(rr00177.sid), and showing the proposed optional routes created from the notes of NPR’s
surveyors. It forms a different route structure than what is normally indicated on
American maps. It originates from the south tip of Lake Superior.
Jay Cooke & Public Relation Efforts (1870-1873)
In the beginning the NPR board attempted to sell bonds almost entirely by
recommendation to persons of wealth. This concept was doomed from the very beginning
as the general populace was left out. Sam Wilkeson, hired by Cooke for promotion of the
line’s advantages, published glowing accounts of the western land, comparing land in
Montana to that of southern Ohio’s mildness for example. The idea took hold!
Newspapers failing to publish glowing accounts of NPR’s purpose and advantages in
transportation were threatened with losses to their advertising, and editors were
threatened by loss of their jobs. This was a ‘tough-sell’ time for the railroad. The concept
worked and Jay Cooke was able to sell $30 Million of bonds by 1871; mostly from
savings of farmers & tradesmen. He sold a total of $90,000,000 before 1872. And in the
process NPR’s new management squandered the money – same as their predecessors.
The NPR Board was unable to stop the squander. Jay Cooke Restructures NPR Finances
and converts $600,000 of NPR Stock to Bonds @ 50% face value. He then established a
‘twelve-shareholder group’ who bought bonds at par in Philadelphia, with a share value
set at $541,234 each. One-half of share value was set aside to be used for establishing the
NPR “Lake Superior & Puget Sound Townsite Company” (created to exclusively form,
manage and construct towns that would be needed along the complete track line in Feb,
1870)

The US Senate called for a hearing on Feb 13, 1872 to examine progress
and financial stature of the railroad. (HR Misc. Docs Vol 4 Doc #228)

The NPR management team presented the following information to the Senate:

The NPR road built by low-bid contractors and no NPR manager had a
construction contract or interest in the venture. They had completed on the
Eastern end 229 miles of track; and on the Western end 21 miles. NPR had
purchased a ½ interest in the Duluth Railroad. The track roadbed was 12’ wide at
top of grade; and only American steel rails weighing 56#/yard and crossties laid
2,650 per mile were used. The total cost to date for the east end was $5,347,833
($23,571/mile) and the total cost for the west end was $714,000 (28,560/mi).

NPR has 48 locomotives, 4-switch engines, 8 passenger cars, 2 baggage cars, 3
express & mail cars, 380 platform cars, 25 dumping cars & 15 haul cars, plus
orders for about twice as many are issued. On the Eastern end - 20,000 tons of
steel rails was contracted, 5,000 tons was delivered; on the Western end – 10,000
tons contracted; 3,000 tons was delivered.

Iron for the rails was supplied by: Bethlehem Iron, Bay State Iron, Cincinnati
Iron, Atkins Brothers, Brady’s Bend Iron, Cambria Iron, Lackawanna Iron,
Pacific Rolling Mill, Benjamin Haywood, Harbaugh, Mathias & Owens, National
Iron, James Woods & Sons, and Waterman & Beaver. All ore/iron is of American
manufacture.
Current efforts included:

200 miles of new road has been contracted on the east end, and 40 miles on west
end, with 200 more miles under work. They plan to have 317 miles in operation at
years end. Track surveys have been continuous: except for 130 miles on the
Yellowstone & 50 miles west of the Rockies. Over 4,000 miles has been surveyed
to date. Note: At this time the route was to follow the revised plan to cross the
Yellowstone at Glendive, and cut across the prairie lands towards Bozeman. It
was planned in 1872 to survey the Missouri to Yellowstone & all Montana
connections with the remainder needed from MT to west end connections.

All MN land grant survey land was platted by NPR, the odd sections = 979,636 acres, the
even sections = 646,317 acres. The WA land grant survey plats by NPR totaled 26
townships = about 299,588 acres. At year end NPR is entitled to 2,918,400 acres in MN
and 1,654,000 acres in WA. No land was sold as NPR hasn’t received titles. NPR’s
colonizing plan for the grant land is: sell land at low rate to settlers and thus create traffic
for the railroad & establish towns along the track. Develop diversified industries across
the route line and sell land as noted (7% interest on notes):
10% in cash
10% in one, two or three years
15% in four to seven years

NPR has established low-cost & free transportation to the land by settlers, has planted
fruit & forest trees, & supplied tools for home site construction if needed. Buildings to
supply settler with all their needs are being erected along the line, forest lands are being
protected from fire & theft, a bureau of immigration for veterans was established, free
press, telegraph stations, churches and aid to community construction is underway.

No NPR officer has acquired or been promised any land grant land. Additional details are
available in numerous pages of the published document – no NPR violation to the
contract has been noted.

Sale of construction bonds started to slip in 1872 as NPR executives were determined to
be spending money for personal luxuries faster than money was coming in. The use of
Congressional politicians as NPR management again proved worthless. These persons
apparently had no or little ability to manage a multi-faced operation. Jay Cooke (privately
& in secret) bought back many of the bonds at a rate of $90,000 for every $100,000
initially sold. For a while he kept the full operation afloat, but by 1873 the NPR business
failed and construction was halted, followed by Jay Cooke & Company’s financial
collapse on September 18, 1873.

1873 Financial Failure in the US precipitated major financial worries in
the US
After Jay Cooke’s NY bank failed, it was followed by his other banks failing in
Philadelphia and Washington. On Sept 19, 1873, thirty other banks collapsed in New
York & Philadelphia. On Sept 20, President Grant closed the NY Stock Exchange for ten
days so as to slow or stop the depreciation of stock. The Federal government’s financial
backing of the economy which was previously decreasing by $1 Million per day, shot
back up. For the next five years the depression was severe with numerous business
failures throughout the nation..
1873 – 1874 Actions by NPR were put in place to recover the financial
losses
NPR’s attorney, Hazard Stevens, (son of Washington Territory Governor, Isaac Stevens)
was found to be stealing logs. He was immediately fired. Track sections were completed
at: Duluth to Bismarck & from Kalama to Tacoma. A Senate Committee headed by
Windom examines NPR prior abuses, and it was disclosed that there was basically no
impact on the line. Frederick Billings was considered as Managing Director of NPR.

In 1875 NPR Management Reorganized
Frederick Billings (elected as the new NPR Managing Director) created a startling re-
structuring plan – that caught all by shock!

Existing mortgages would be foreclosed, and NPR stock would be substituted
for outstanding bonds. All assets, including the land grant, have to be
purchased by interested bondholders.

His planned actions were in strict violation of Congressional Acts; but the US
bankruptcy judge granted the changes as follows:

The Supreme Court rules that NPR breaches of original 1864 land grant do not return
land automatically to the GLO! Dr. Hough convinces Congress to fund examination
of timber use, and establishes the National Forest Service

NPR’s prior bad treatment of workers erupts in riots; “The Year of Violence.” is
reflective of the earlier problems. The newly elected NPR President, Frederick
Billings calms all! His management style exceeds all expectations.

END OF EARLY NPR EVENTS ----- HOW THE LINE SURVIVED
CONTINUES IN PART II. (1875 TO PRESENT)

Cleve Kimmel – County Coordinator (Montana_cal@hughes.net)
Original Release Date: January 1, 2010
Refer to Montana State GenWeb Site for additional details on propriety rights
(http://mtgenweb.org).
Referenced documents that contain current copy rights cannot be copied and submitted in
their entirety – only granted excerpts. No file that is downloaded to a recipient can be utilized
in multiple-mailing lists; or for a fee or profit. Files downloaded are for the expressed usage
by the recipient in pursuit of historical information or genealogical background.
i
 Documentation for this article comes from: YGF Title Abstract Records
 MN Historical Society “NPR Secretary's Dept, Letters & Records 1864-1876”
 42d Congress, HR 2d Session “Miscellaneous Documents 228 – 1872, Vol IV”
 45th Congress 2d Session “Senate Reports”, Vol 2
 Smalley “History of the Northern Pacific Railroad”
 Jensen & Draffan “Railroads & Clearcuts – 1960”
 Numerous news articles describing personal details
 Library of Congress Maps & Government Articles about NPR
ii
Immediately after the establishment of the United States, the Supreme Court ruled that the various Indian
Tribal Communities that have a common unity (religious beliefs, dress, culture, etc.) shall be called a
Nation so that the a formal treaty could be created between the two (USA & each Nation). Within that
nation would be the ruling members as dictated by the particular Nation’s custom (Tribal Elders/Leaders,
or selected/grouped members). Within these Tribes would be Bands, generally led by one principal Chief.
One or more Bands would constitute a Tribe. If 75% of the ruling body agreed to particular terms of a
Treaty, then that treaty would stand.